Pros and Cons of Prepaid Cremation Plans

What is Prepaid Cremation and How does it work?

A prepaid cremation also known as prepaid funeral is the arrangements offered by a funeral home to predetermine your funeral. They provide you with the estimated full payment for the plan or services you choose. However, you have a choice to pay a lump sum amount in its entirety or within the time frame of three, five, or ten years. 

Usually, prepaid cremation work to address two main things: 

The first one is its assurance to assist your family at the most emotional and difficult time. The surviving ones are not forced to make difficult and important decisions that need complete focus and attention. They will not have to go through it as you have already managed your funeral choices via funeral home services. 

The other one is that it provides financial security to your family as it handles your funeral expenses. Whether you pay in intervals or all at once, your final expenses are covered so your family won’t have to worry about it. 

However, your preferred services, age, and location can impact the price of prepaid cremation. You can expect to pay around $2,000 to $10,000 for a prepaid funeral plan. If you want to pay all the payments at once you can select the “single premium” option so that you can pay the entire cost of your funeral upfront. In this way, you do not have to make any further payments. 

What are the pros and cons of prepaid cremation?

Though this plan is an appealing option, one should consider the pros and cons of prepaid cremation. Here we are going to discuss them briefly. 

Pros of Prepaid Cremation 

1- Benefit of Personal Decision

Most of us like to make our own decisions by ourselves. By choosing a prepaid cremation plan you have a chance of making your personal decision and fulfilling your wishes after death. With these services, you would leave the world with the satisfaction that you will be laid as per your wishes. 

2- Financial Protection for your Family 

One of the primary benefits of getting these services is that you can reduce the financial burden your family has to face after your death. In this way, you can save hundreds and thousands of dollars giving financial protection to your family. Getting cremation insurance while you are alive will make it less stressful for your loved ones in an already emotional situation. 

3- Funeral Home’s Choice 

With these services, you can opt for the funeral home of your choice where you want to be buried or cremated. Meanwhile, your family and funeral services provider have to stick to the plan you already opted for. 

4- Available at Current Price 

When you choose a prepaid plan, you select it at the current price of the cremation policy. In case the prices go up in the future, your family will not be affected by any extra charges. Remember that funeral homes or providers may also have economical plans when you go for a prepaid funeral plan. 

5- Tax Saver 

When you pay for your prepaid cremation plan from your estate, it may come under tax deduction. It means you do not have to pay any tax on these services. Moreover, you can consult your tax professional about this. 

Cons of a Prepaid Cremation 

1- No Services or Refund if goes out of Business 

If the funeral service provider where you took your funeral plan goes out of business by the time of your demise, neither this is a refund nor any service offered by them. So it will be a loss of money and an extra burden too on your family to find an alternative one. 

2- Non-Alteration in Plans 

After getting a prepaid cremation policy, you are not allowed to make any changes to your plan if you want to. These policies are not flexible in terms of any alteration. 

3- Some Additional Payments 

Sometimes your family has to pay for some additional services despite you taking a Prepaid Funeral Plans. So it is crucial to read your agreement in detail before signing up for a plan for prepaid cremation. 

4- Overbooking Results in Denial 

If your service provider is overbooked at the time of your death, there is a possibility that they will refuse to honor your agreement. In that case, your family has to face hurdles while finding a new funeral service provider on such short notice. 

5- Prepaid Funeral is Non-Transferable 

In case you change city or state after getting a prepaid funeral plan, your plan will not be transferable. It happens mostly when your service provider is not a national service provider. 

Aside from these, there are many other pros and cons of prepaid cremation. The best way to get the most out of this service is to go through the documents carefully and discuss the matter with your family members well before time. 

Conclusion 

Death is the unveiled truth, that’s why going for prepaid funeral services has become essential for everyone’s life. It provides you with some kind of control over your funeral services and proceedings. However, if you are deciding to go with a prepaid funeral provider, do it carefully after determining all the pros and cons of prepaid cremation. 

Frequently Asked Questions (FAQ)

1- How much does cremation cost?

Basic cremation costs may vary from $800 to $3,000. However, the cost may depend on the funeral home you opt for, the services you choose, and your residential state. In addition, if you add up things like viewing, memorial, flowers, and others, they can increase the cost. 

2- What are the best-prepaid cremation plans?

Here are some of the best-prepaid cremation plans for you:

• AIG
• Foresters Financial
• AARP
• Gerber Life Insurance 
• Fidelity Life Insurance 
• Mutual of Omaha.  

3- Can you get a refund for a prepaid funeral? 

No, you will not get a refund for your prepaid funeral. No matter if you have changed your mind about your plan or want to pay differently there is no option of refund unless your policy is maintained by a revocable trust.